2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 519A - MEDICAL MALPRACTICE INSURANCE
519A.6 - STABILIZATION RESERVE FUND.

        519A.6  STABILIZATION RESERVE FUND.
         1.  There is created a stabilization reserve fund.  The fund shall
      be administered by three directors, one of whom shall be the
      commissioner.  The remaining two directors shall be appointed by the
      commissioner:  One shall be a representative of the association and
      the other a representative of its policyholders.
         2.  The directors shall act by majority vote with two directors
      constituting a quorum for the transaction of any business or the
      exercise of any power of the fund.  The directors shall serve without
      salary, but each director other than the commissioner shall be
      reimbursed for actual and necessary expenses incurred in the
      performance of official duties as a director.  The directors shall
      not be subject to any personal liability with respect to the
      administration of the fund for acts or decisions made in good faith
      pursuant to the provisions of this chapter.
         3.  Each policyholder shall pay to the association a stabilization
      reserve fund charge determined by the directors which shall not
      exceed the amount of one annual premium due for insurance through the
      association.  Such charge shall be separately stated in the policy.
      The association shall cancel the policy of any policyholder who fails
      to pay the stabilization reserve fund charge.
         4.  The association shall promptly pay to the fund all
      stabilization reserve fund charges which it collects from its
      policyholders and any retrospective premium refunds payable under any
      group retrospective rating plan approved by the commissioner under
      the provisions of this chapter.
         5.  All moneys received by the fund shall be held in trust by a
      corporate trustee selected by the directors.  The corporate trustee
      may invest the moneys held in trust, subject to the approval of the
      directors.  All investment income shall be credited to the fund, and
      all expenses of administration of the fund shall be charged against
      the fund.  The moneys held in trust shall be used solely for the
      purpose of discharging when due any retrospective premium charges
      payable by policyholders of the association under the group
      retrospective rating plan approved by the commissioner.  Payment of
      retrospective premium charges shall be made by the directors upon
      certification to them by the association of the amount due.  If all
      moneys accruing to the fund are finally exhausted in payment of
      retrospective premium charges, all liability and obligations of the
      association's policyholders with respect to the payment of
      retrospective premium charges shall there upon terminate and shall be
      conclusively presumed to have been discharged.  Any moneys remaining
      in the fund after all such retrospective premium charges have been
      paid shall be returned to policyholders pursuant to procedures
      authorized by the directors.  

         [C77, 79, 81, § 519A.6]
         Referred to in § 519A.1, 519A.2, 519A.3, 519A.4, 519A.5, 519A.10,
      519A.13